The theoretical performance of a scramjet propulsion system incorporating an magneto-hydro-dynamic (MHD) energy bypass scheme is calculated. The one-dimensional analysis developed earlier, in which the theoretical performance is calculated neglecting skin friction and using a sudden-freezing approximation for the nozzle flow, is modified to incorporate the method of Van Driest for turbulent skin friction and a finite-rate chemistry calculation in the nozzle. Unlike in the earlier design, in which four ramp compressions occurred in the pitch plane, in the present design the first two ramp compressions occur in the pitch plane and the next two compressions occur in the yaw plane. The results for the simplified design of a spaceliner show that (1) the present design produces higher specific impulses than the earlier design, (2) skin friction substantially reduces thrust and specific impulse, and (3) the specific impulse of the MHD-bypass system is still better than the non-MHD system and typical rocket over a narrow region of flight speeds and design parameters. Results suggest that the energy management with MHD principles offers the possibility of improving the performance of the scramjet. The technical issues needing further studies are identified.